TIGA, the trade association representing the UKgames industry, has backed a Whitehall push to encourage businesses to pay
their suppliers promptly, saying non-payment is causing smaller companies to
struggle.
Fewer than a fifth of Britain’s biggest listed
companies have pledged to pay suppliers promptly, despite a Whitehall push to
cajole big business into improving the lot of smaller companies. Michael Fallon, business and enterprise minister,
wrote to companies last November in a bid to get them to sign up to a new
prompt payment code.
This voluntary agreement is aimed at promoting good
payment practices but the Financial Times reported today that fewer than a
fifth of Britain’s biggest listed companies have pledged to pay suppliers. TIGA has signed up to the code.
TIGA research shows
that 26 per cent of developer and digital publishers believe that late payment
has held back their business from growing. The issue of late payment can have damaging
repercussions for developers' cash flows and it also causes many man hours
being wasted in chasing payments. Without prompt payment, some developers owed money
could end up closing.
Signatories to the Prompt Payment Code undertake to:
- Pay
suppliers on time within the terms agreed at the outset of the contract without
attempting to change payment terms retrospectively without changing practice on
length of payment for smaller companies on unreasonable grounds - Give clear
guidance to suppliers providing suppliers with clear and easily accessible
guidance on payment procedures ensuring there is a system for dealing with
complaints and disputes which is communicated to suppliers advising them
promptly if there is any reason why an invoice will not be paid to the agreed
terms - Encourage
good practice by requesting that lead suppliers encourage adoption of the code
throughout their own supply chains
Dr Richard Wilson, TIGA CEO, and a former Chairman of the
Better Payment Practice Group, said:
“Reducing the
incidence of late payment of debt is an important way of achieving this goal so
it disheartens us to hear that, nationally, fewer than one in five has signed
up. We hope that the gaming sector can take the lead here and we encourage
games businesses to sign the Prompt Payment Code. Signatories to the Code
commit themselves to adopt best practice payment procedures. Together we can
improve the payment culture in the UK games industry.”
Notes to editors:The Government plans to eliminate the
Shortage Occupation List (SOL) on the UK Borders Agency website (http://www.ukba.homeoffice.gov.uk/sitecontent/documents/workingintheuk/shortageoccupationlistnov11.pdf).TIGA
research has previously indicated that Games
Tax Relief should generate and safeguard 4,661 direct and indirect jobs over
five years.
About
TIGA:
TIGA is the trade association representing the UK’s
games industry. The majority of our members are either independent games
developers or in-house publisher owned developers. We also have games
publishers, outsourcing companies, technology
businesses and universities amongst our membership. Since 2010, TIGA has won 14 business awards and has been nominated a
finalist for 16 other awards.
TIGA's
vision is to make the UK the best place in the world to do games
business. We focus on three sets of activities: political representation,
generating media coverage and developing services that enhance the
competitiveness of our members. This means that TIGA members are
effectively represented in the corridors of power, their voice is heard in the
media and they receive benefits that make a material difference to their businesses,
including a reduction in costs and improved commercial opportunities.
For
further information, please contact Dr Richard Wilson, TIGA CEO on: 07875 939
643, or email: richard.wilson@tiga.org.